CMAI survey: 52% of apparel makers expect stronger festive sales
A CMAI survey points to a positive festive outlook for Indian apparel, with Indian wear leading growth. While 52% of respondents expect sales to rise and 30% see them matching last year, higher raw-material costs are pressuring margins as most manufacturers limit price hikes.
What happened
Clothing Manufacturers Association of India (CMAI) · CMAI survey signals positive festive demand for Indian apparel, led by Indian wear and rising online sales.
Key facts
- 52% of CMAI members expect higher festive sales than last year
- 30% expect sales to match last year
- Less than 20% expect a sales decline
- 54% are absorbing higher raw-material costs through lower margins
- About 35% have increased prices
- 45% identify Indian wear as the strongest growth category
- Online accounts for around 12% of apparel sales
Why this matters
Prioritize partnership or acquisition targets with differentiated Indian-wear portfolios, resilient sourcing networks, and pricing power to capture festive demand without amplifying margin risk.
What to watch
- CMAI follow-up data on order books, capacity utilization and realized festive sell-through.
- Cotton, polyester, viscose, yarn and freight-price movements through the buying cycle.
- Retailer inventory levels and wholesale reorder rates after the first festive demand peak.
- Extent of MRP increases, discount intensity and gross-margin commentary from listed apparel retailers and manufacturers.
- Monsoon, rural-income and consumer-confidence indicators, especially for value and mid-market apparel.
- Indian-wear category growth relative to western wear and discretionary fashion categories.
- Increase festive allocations toward Indian wear, wedding/occasion categories and proven regional demand clusters.
- Use targeted rather than broad price increases, prioritizing premium products and low-price-elasticity styles.
- Tighten SKU-level inventory buys and build rapid replenishment capacity to avoid post-festive clearance risk.
- Secure fabric and yarn supply through forward contracts, vendor negotiations and material substitution where brand perception is protected.
- Track competitor discounting closely; defend entry-price points while reducing promotions on high-demand festive lines.